Guide to Managing Stafford Loans in Repayment

download report

Transcript Guide to Managing Stafford Loans in Repayment

Default Prevention
Training
A Guide to Enhance Schools’
Default Prevention Efforts
You’ll learn how to…
•
•
•
•
assess the role of a default manager
calculate cohort default rates
implement a default prevention plan
find resources to help you and your
students
2
Default manager’s role
• varies by school
• general responsibilities include:
– teaching enrolled students financial literacy
skills to help them avoid delinquency and
default
– helping former students resolve student
loan delinquencies
3
Result of default manager’s efforts
•
•
•
•
•
higher student retention
lower cohort default rates
taxpayers save
program integrity is reinforced
you feel good about making a difference
4
Cohort default rate
• What is a cohort default rate (CDR)?
– a percentage of students in a cohort year
who default in the year they enter
repayment or the following year
– fiscal year is October 1 – September 30
5
CDR calculation
• numerator
– number of borrowers who entered
repayment and defaulted in the cohort
fiscal year
• denominator
– number of borrowers who entered
repayment in the cohort fiscal year
6
CDR example
• A degree-granting school had 90 borrowers
enter repayment in the cohort fiscal year.
Of those, 8 borrowers defaulted in the
cohort default period.
8 defaulted borrowers
90 total borrowers in repayment
=
8.8% cohort
7
Cohort resource guide
• ED’s Cohort Default Rate Guide
– http://ifap.ed.gov/DefaultManagement/
DefaultMangement.html
8
Default prevention plan
• perform activities to meet 34 CFR 668.14(b)(15)
requirements
–
–
–
–
–
–
–
–
–
conduct entrance counseling
provide financial literacy information to borrowers
communicate across campus
conduct exit counseling
practice timely and accurate enrollment reporting
review Date Entered Repayment report
resolve delinquency
review the Loan Record Detail report
analyze default data, identify defaulter
characteristics
9
Entrance counseling
• first time borrowers must receive entrance
counseling
• additional school efforts
• helpful publications
• www.mapping-your-future.org
10
Financial literacy
• refer to Financial Literacy Education
brochure
11
Across-campus communication
• How is communication between offices on
your campus?
• What departments should be involved in
default prevention and management?
• ask questions of other departments
• default prevention and management isn’t the
responsibility of a single office
• review academic progress and enrollment
status
• timely and accurate communication
12
Exit counseling
• in-depth focus on repayment plans
and choices
• opportunity to clarify student loan
information
• additional school efforts
• helpful publications
• www.mapping-your-future.org
13
Enrollment reporting
• How often do you report?
• Do you use the Clearinghouse?
• Timeliness and accuracy are crucial!
14
NSLDS
• Date Entered Repayment (DER) report
– review bi-monthly
– compare to institutional date
• reflected in cohort default rate
15
Delinquency resolution
• Default Aversion Assistance Report
– contact loan servicer
– call students who are more than xxx days
delinquent
• Extended Exit Counseling
• Default Rescue Unit
16
Defaulted loan data analysis
• Do you need to modify your default
prevention activities?
• How often will you review your process and
measure your progress?
17
Resources
• NSLP handouts
– Loan Education Products
– Financial Management Tools
– Money Management Tips
– Money Management Counseling
– Loan Consolidation Pros and Cons
18
Resources
• NSLP handouts
– Military Mobilization Fact Sheet
– Default Prevention and Debt Management
– Loan Summary
– Extended Exit Counseling
– DAAR
19
Resources
• NSLP forms, brochures, presentations
– entrance/exit counseling
– Find your student loans online
– How can a phone call make a difference?
– How will I repay my student loan?
– What if I can’t make my student loan
payment?
– Am I eligible for teacher loan forgiveness?
– financial literacy education presentations
20
Questions
21
For more information
National Student Loan Program
1300 ‘O’ Street
Lincoln, NE 68508
Robyn LeGrand
(314) 369-3721
[email protected]
Tom Melecki
(800) 735-8778, ext. 6812
[email protected]
22